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For many people in India, especially those who have just started their jobs or managing tight monthly budgets, buying high coverage insurance plans isn’t always possible. This is where 1 lakh health insurance in India comes as an affordable starting point.
While it may not cover major surgeries, it can still protect you against common hospital expenses. You can still get short-term treatments and minor procedures done....Read More
Trust of 20+ Years in Industry
Written byLakshey Bahl
Insurance Writer
Published 19th March 2026
Reviewed byVaibhav Kumar
Last Modified 19th March 2026
Insurance Domain Expert
What is a 1 Lakh Health Insurance Policy?
A 1 lakh mediclaim policy is a basic health plan that gives you coverage up to ₹1 lakh for medical expenses. It is quite useful for those who want some protection against medical costs without having to pay a huge premium
In India, the approximate hospital bill for common health issues like dengue, management of diabetes & BP, or minor surgeries can be between ₹16,000 to ₹50,000. This means a ₹1 lakh health insurance plan can handle many such situations without having to pay out of pocket.
While ₹1 lakh is not a lot for health emergencies, some people can still benefit from it. If you’re a young person who is earning ₹15,000-₹40,000 per month, it’s quite useful for you.
Basic Hospitalisation Coverage Explained
A 1 lakh health insurance plan typically covers essential hospitalisation expenses that are quite useful for those who can’t afford a more expensive health insurance. This includes:
- Hospitalisation costs: This includes room rent, ICU charges, doctor’s fees, and medicines etc
- Pre-hospitalisation expenses: This is usually covered for 30 days before the insured person gets admitted (it includes tests, consultations)
- Post-hospitalisation expenses: The insured person is covered for 30-60 days after discharge (medicines, follow-ups included)
- Daycare procedures: Treatments like cataract surgery or minor procedures that don’t require 24-hour admission are also included in most health insurance policies
Insurers also offer cashless treatment at network hospitals, which is especially useful for those who may not have immediate cash during emergencies.
This means a short hospital stay of 2-3 days for minor procedures, something that costs around ₹40,000-₹70,000 in India, can be covered under this plan.
But it’s important to remember that while the coverage is helpful for smaller medical needs, it may not be a great solution for long-term and bigger families. Also, if you’re living in a metro city, this coverage may leave you partially protected.
Benefits of Buying 1 Lakh Health Insurance
A 1 lakh health insurance plan may seem small, but for many, it offers practical, immediate financial protection against common medical expenses. Here are the key benefits you should know
1. Affordable Entry into Health Insurance
One of the biggest benefits is affordability. For individuals earning ₹15,000-₹40,000 a month or managing their expenses on a limited income, this plan offers a low-cost way to start health coverage instead of delaying it altogether.
2. Covers Common Medical Expenses
A 1 lakh health insurance in India can cover hospital bills for common illnesses like infections, minor accidents, or minor surgeries, which typically cost between ₹16,000 to ₹50,000.
3. Reduces Out-of-Pocket Spending
In India, nearly 70-80% of healthcare users pay out-of-pocket. Even a ₹1 lakh cover can significantly reduce this burden for first-time policyholders.
4. Access to Cashless Treatment
Most insurers offer cashless hospitalisation at network hospitals, which is important for those who may not have funds during emergencies.
5. Preventive Health Check-ups
Some plans include basic health check-ups, encouraging early diagnosis, something many people skip due to cost concerns.
Need for a 1 Lakh Health Insurance Policy
With medical inflation in India rising at 12-15% annually, even a short hospital stay can become quite expensive. For someone with no insurance, a single illness can derail monthly finances. This is where a 1 lakh health insurance plan becomes relevant.
It is particularly useful for young earners, those without employer health cover, and families in tier 2/3 cities where health treatment is not as expensive as metro cities.
From treating health issues like fractures to minor surgeries, this plan ensures you’re not entirely dependent on out-of-pocket spending during medical emergencies.
1 Lakh Health Insurance Premium Rates
In India, 1 lakh health insurance premium rates typically ranges between ₹2,000 and ₹5,000, making it accessible even for someone earning a modest monthly income. For a young person in their 20s, this can be as low as ₹150-₹400 per month, which is quite affordable.
However, the exact premium for 1 lakh health insurance in India depends on several personal and risk-related factors like age, pre-existing conditions, lifestyle habits, and profession of the Insured.
Types of Health Insurance Plans
If you’re considering a 1 lakh health insurance, choosing the right type of plan is just as important as the coverage amount. Different plans serve different needs, especially when you’re working with a limited budget. Here are the most relevant options:
1. Individual Health Insurance Plan
This health insurance plan covers one person. Individuals buying insurance for the first time with no dependents can also benefit from it.
Since the entire ₹1 lakh cover is reserved for one person, it ensures full utilisation of the sum insured during a claim, making it a practical choice for you.
Since the entire ₹1 lakh cover is reserved for one person, it ensures full utilisation of the sum insured during a claim, making it a practical choice for you.
2. Family Floater Health Insurance Plan
A family floater plan can cover all the immediate members (spouse, children, parents) under a single sum insured of ₹1 lakh. But at this coverage level, it has its own limitations. The ₹1 lakh is shared among all members, which can get exhausted quickly if more than one person needs treatment. It doesn't make much sense for ₹1 lakh cover to be shared among family members. But, you can still get a family floater for this sum insured in case you’re a young couple or a young family of three or four living in a small town or city.
3. Senior Citizen Health Insurance Plan
These plans are designed for individuals aged 60 and above, but a ₹1 lakh cover is usually not enough for senior citizens due to their higher medical needs. In this case, a ₹1 lakh plan can only be considered as a supplementary cover, not a standalone policy.
4. Group Health Insurance Plan
Group insurance is typically provided by employers and covers employees under a single policy.
If your employer provides a decent coverage through the group health insurance policy, a 1 lakh health insurance plan can be used as an additional personal backup.
Instead of choosing blindly, the key is to match the plan type with your situation. At the ₹1 lakh level, individual plans usually offer the most practical value, while other types work better as support or backup options.
If your employer provides a decent coverage through the group health insurance policy, a 1 lakh health insurance plan can be used as an additional personal backup.
Instead of choosing blindly, the key is to match the plan type with your situation. At the ₹1 lakh level, individual plans usually offer the most practical value, while other types work better as support or backup options.
Who Should Buy 1 Lakh Health Insurance?
A 1 lakh health insurance plan is not meant for everyone, but it can be a practical starting point for those who are either early in their financial journey or have limited capacity to pay high premiums.
Young and Healthy Individuals (20s-Early 30s)
If you’re young, healthy, and have no major medical history, your immediate risk of large hospital bills is relatively low. A 1 lakh health insurance policy can act as a low-cost safety net for common issues like infections, minor injuries, or short hospital stays—while you build savings and upgrade later.
First-Time Earners and Early Professionals
If you’ve just started earning and your salary is limited, committing to a high premium may not be practical. This plan allows you to get insured early at ₹2,000–₹5,000 per year, instead of postponing coverage. It’s especially useful if you don’t have employer-provided insurance and you’re working in an unorganised sector job.
Many people in India do not have a dedicated emergency fund. Since a single hospitalisation can cost ₹30,000-₹70,000, even a basic cover helps prevent sudden financial stress.
Many people in India do not have a dedicated emergency fund. Since a single hospitalisation can cost ₹30,000-₹70,000, even a basic cover helps prevent sudden financial stress.
Low-Income Households
If you’re a family managing monthly expenses on a tight budget, even a small coverage health insurance policy can provide some financial cushion against medical emergencies. This can be especially useful in common health concerns like management of a common disease or minor surgeries.
As a Top-Up for Limited Coverage
If you already have a small group cover, this plan can act as an additional buffer, helping you manage smaller claims without exhausting your primary policy.
Eligibility Criteria for 1 Lakh Health Insurance
The eligibility criteria for 1 lakh health insurance can vary by insurance company. Usually, any individual between the ages of 18 and 65 can apply for a 1 lakh health insurance coverage in India.
However, some insurance companies may have eligibility requirements regarding an individual's pre-existing health conditions. It is recommended to consult your insurance provider about any insurer-specific eligibility requirements for a 1 lakh health insurance policy.
How to Choose 1 Lakh Health Insurance?
Selecting a 1 lakh health insurance plan includes multiple considerations. This includes considering your coverage needs, the insurance provider's reputation, the waiting period, and several other factors. Before buying a policy, one should analyse the following factors to make an informed decision:
Assess your Healthcare Needs
The first step to choosing a 1 lakh health insurance policy is to evaluate your healthcare requirements. After that, you need to analyse whether the coverage provided by the policy meets your needs.
For instance, check whether the policy covers hospitalisation costs, outpatient services, ambulance charges, and critical illness coverage, as per your requirements.
For instance, check whether the policy covers hospitalisation costs, outpatient services, ambulance charges, and critical illness coverage, as per your requirements.
Look for Family Floater Plans
Family floater plans provide health insurance coverage for the entire family. So, you can seek medical coverage for your entire family at an affordable premium. Check whether the 1 lakh health insurance policy covers your family members.
Claim Settlement
There are 2 types of claim settlement procedures: cashless claims and reimbursement. You can get cashless claims when you avail treatment from a network hospital. For reimbursement, you need to pay the expenses upfront and claim reimbursement later.
Check whether your insurer provides both these facilities. Besides, you should also check the claim settlement ratio (CSR) of the insurer. The IRDAI (Insurance Regulatory and Development Authority of India) recommends a higher CSR. A higher CSR means you can trust the insurer.
Check whether your insurer provides both these facilities. Besides, you should also check the claim settlement ratio (CSR) of the insurer. The IRDAI (Insurance Regulatory and Development Authority of India) recommends a higher CSR. A higher CSR means you can trust the insurer.
Waiting Period
Health insurance policies often include waiting periods for pre-existing conditions. An insured can get health insurance coverage after the waiting period ends. While choosing a 1 lakh health insurance policy, go with an insurance provider that has shorter waiting periods. This ensures you can avail your health insurance benefits earlier.
Customer Service of the Insurance Company
Before purchasing a health insurance plan, evaluate the company's reputation. It is crucial to evaluate the insurer's customer service quality, dependability, and claim settlement procedure by reading client reviews, feedback, and ratings.
Inclusions and Exclusions in 1 Lakh Health Insurance
Knowing the inclusions and exclusions helps you make informed decisions when choosing a health insurance policy.
Listed below are the inclusions in a 1 lakh health insurance:
Hospitalisation Expenses
1 lakh health insurance includes the expenses of hospitalisation costs such as nursing expenses, room charges, doctor’s consultation fees, etc. So, you can seek coverage for all expenses incurred in your hospital stay.
Ambulance Charges
When you buy a 1 lakh health insurance plan, you can get coverage for the expenses incurred in ambulance fees during hospitalisation. So, it ensures peace of mind during medical emergencies without any financial strain.
Pre and Post Hospitalisation Expenses
With a 1 lakh health insurance plan, you can get coverage for expenses incurred within 30-60 days before and after hospitalisation. This includes diagnostic charges, medicine bills, nursing fees, follow-up consultation fees, etc.
Daycare Procedures
1 lakh health insurance policies cover the expenses of daycare procedures that involve less than 24 hours of hospitalisation. This includes minor surgeries or treatment procedures that do not require hospital stays.
Listed below are the exclusions in a 1 lakh health insurance:
Pre-existing Health Conditions
Like most health insurance plans, a 1 lakh health insurance policy also does not cover expenses incurred for the treatment of pre-existing health conditions. However, some insurance companies cover the expenses after a certain waiting period.
Alternative Treatments
Alternative treatments such as Ayurveda, Homoeopathy, Unani, etc., may not be covered under a 1 lakh health insurance policy. Any experimental treatments are also excluded from this coverage.
Cosmetic Procedures
Health insurance does not cover cosmetic procedures performed to enhance your appearance or facial features for beautification. However, necessary reconstructive surgery due to any accident is covered in most health insurance.
Non-medical Costs
Expenses that are not directly related to your healthcare are excluded from the 1 lakh health plan coverage. This includes transportation expenses without emergency health issues.
Document Requirements for 1 Lakh Health Insurance Plan
After selecting the insurance company to buy the 1 lakh health insurance policy, you must check the documents required for the application. Though the document requirements may vary by insurance company, the basic ones remain the same.
Here are the required documents for a 1 lakh health insurance plan
- Identity Proof: You can submit documents such as an Aadhaar card, a passport, a voter ID card, a driving license, etc., as proof of identification.
- Age Proof: Submit documents like your birth certificate, voter ID card, Aadhaar card, etc. to prove your age.
- Address Proof: Documents such as a ration card, PAN card, or driving license validate your address.
- Other Documents: Provide passport-size photographs, medical reports, etc., documents as per the insurer’s requirements.
How to Buy 1 Lakh Health Insurance Online?
Purchasing a 1 lakh policy online is a simple and quick procedure. It does not involve lengthy paperwork or waiting in queues. Here are the steps to follow to buy a 1 lakh health insurance online:
- Step 1: Log in to your insurer’s website and select the "Health Insurance” option.
- Step 2: Click on “1 lakh health insurance” from the available plans.
- Step 3: Enter your personal information, including name, date of birth, contact information, etc., to receive health insurance quotes from the insurer.
- Step 4: Select options for individual plan or family floater options.
- Step 5: Upload the required documents and complete the payment procedure.
- Step 6: Once the premium is paid, you will hear from an executive and receive the policy details via mail.
A 1 lakh health insurance policy remains a cornerstone for accessible healthcare in 2026. With this insurance plan, policyholders can obtain basic medical coverage tailored to their needs while keeping premiums affordable.
FAQs about 1 Lakh Health Insurance
What is the 1 lakh health insurance calculator?
The 1 lakh health insurance calculator is an online tool that helps determine the premium amount of your insurance plan. You can find this tool on a reputed insurer’s website and calculate the premium by putting in your sum insured, policy term, age, etc., factors.
How much does 1 lakh medical insurance cost?
The cost of a 1 lakh medical insurance varies from insurer to insurer, depending on various factors. An insured's age, lifestyle, pre-existing diseases, profession, etc., influence the premium amount of a 1 lakh health insurance policy.
What are the documents required for cashless health insurance claims?
You need to provide some specific documents to avail a cashless claim. This includes a health insurance card, doctor’s prescription, hospital admission details, diagnostic test reports, policy details, etc.
What are the documents needed for reimbursement of health insurance claims?
You can claim for health insurance reimbursement after you have settled the bill in the hospital. The documents you need to provide for a health insurance reimbursement include the discharge summary, hospital bills, invoices, medical reports, and any other supporting documentation on the basis of your insurer requirements.
Who is eligible for Ayushman Bharat?
The Ayushman Bharat (PM-JAY) scheme is designed to support the economically weaker groups. The eligibility is based on deprivation and vulnerability criteria such as poor housing, lack of earning members, or social disadvantage, rather than income alone.
In rural areas, some groups are automatically included (such as destitute families and released bonded labourers), while others qualify through deprivation criteria. In urban areas, eligibility is based on low-income occupations like street vendors, domestic workers, and sanitation workers.
In rural areas, some groups are automatically included (such as destitute families and released bonded labourers), while others qualify through deprivation criteria. In urban areas, eligibility is based on low-income occupations like street vendors, domestic workers, and sanitation workers.
What are the key features of 1 Lakh Health Insurance?
The ₹1 lakh health insurance plan works like any other health insurance plan. It enables flexible medical expense coverage nationwide. It also includes reimbursements at non-network hospitals at affordable premiums. One thing that’s unique to ₹1 lakh health insurance plan is it’s so affordable that anyone can afford some level of protection through it.
What are the 1 lakh health insurance benefits for a senior citizen?
1 lakh health insurance provides specific coverage for senior citizens, ensuring financial protection during unforeseen health hazards. It includes coverage for age-related health issues, hospitalisation costs, and other benefits tailored to the needs of a senior citizen.
ARN: Mar26/Bg1803/KB
Sources:
: https://economictimes.indiatimes.com/wealth/insure/rising-hospital-bills-and-health-insurance-premiums-will-budget-2026-help-to-regulate-this-check-what-experts-are-demanding-from-hospital-groups-and-irdai/articleshow/127689516.cms?from=mdr https://www.myscheme.gov.in/schemes/ab-pmjay
https://www.myscheme.gov.in/schemes/ab-pmjay
https://economictimes.indiatimes.com/industry/banking/finance/insure/nearly-70-health-claim-users-opting-for-reimbursement-mode-dont-have-enough-liquid-savings-to-pay-bills-survey/articleshow/111288889.cms?from=mdr
: https://economictimes.indiatimes.com/wealth/insure/rising-hospital-bills-and-health-insurance-premiums-will-budget-2026-help-to-regulate-this-check-what-experts-are-demanding-from-hospital-groups-and-irdai/articleshow/127689516.cms?from=mdr https://www.myscheme.gov.in/schemes/ab-pmjay
https://www.myscheme.gov.in/schemes/ab-pmjay
https://economictimes.indiatimes.com/industry/banking/finance/insure/nearly-70-health-claim-users-opting-for-reimbursement-mode-dont-have-enough-liquid-savings-to-pay-bills-survey/articleshow/111288889.cms?from=mdr
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